Herman Miller Saves Labor and Costs by Switching to Reusable Packaging
By switching from expendable to reusable packaging for the handling of acomponent on a chair assembly line, Herman Miller is saving $46,000annually in material and labor. The cost-saving switch earned thecompany the Reusable Packaging Association 2012 Excellence in ReusablePackaging Award.
Herman Miller Case Study | 1
“Herman Miller has been using returnable packagingthroughout the company for more than 20 years as a steptoward environmental sustainability,” said Cindy Doman,Packaging Engineer at Herman Miller. “As we understandbetter the positive financial impact it can also have on ourmanufacturing process, we are looking for otheropportunities to use reusable packaging. Well-designedreturnable packaging can have a positive impact on peopleand profitability as well as the environment.”
In 2012, the companyswitched fromexpendable packagingto a returnable fillerwith crosslink foam forthe shipping andhandling of an officechair component. Thepart is a “Y” shapedplastic part called a“spine” that isassembled on theSAYL® office chair.
The part was beingshipped into HermanMiller Greenhouse incorrugated boxes thatwould be re-used
several times before being recycled. By switching to thereusable solution, the company has gained the followingmeasurable outcomes:
• Saved 63 minutes per day in handling of theparts; this equates yearly to 266 hours
• Used 4,300 fewer boxes, saving 24,645 poundsof corrugated per year
• Achieved a combined material and labor savingof $46,000
• Eliminated the need for two warehouse skidlocations
• Eliminated movement of heavy boxes from skidto roller conveyor by a material handler, andeliminated need to cut them open with a knife
• Eliminated handling of boxes by part supplier
“We have a strong commitment to our environment andare always looking for ways to reduce waste; whether it ispackaging material or extra labor needed to repack partsfor efficient presentation to our assembly lines,” explainedDoman. “When implemented correctly, returnable
packaging can cut down on the number of touches a partreceives both in material handling as well as the handlingof the part on the assembly line.”
Cross functional team maps theprocess before designing the solution
A cross functional team of production supervisors,facilitators, conveyance operators, material handlers, thepart supplier, and packaging engineering investigatedreturnable packaging designs that would optimizing thefollowing factors:
• The part supplier’s manufacturing processes(without adding more time or effort)
• Transportation (trailer cube)• Material handling (labor and time reduction)• Sustainability (cut down waste)• Create a part presentation on the line thatwould effectively cut down on labor time,without sacrificing quality.
The returnable packaging “self-returns” so theoperator assembling the chair doesn’t have to stopwhat he is doing to return the packaging.
This is a full rack of parts shippedfrom the part supplier. It includes twomovable shelves and a front fabriccover with Velcro closure.
This is the way the SAYL spine was packaged prior to implementing the returnable packaging.
Herman Miller Case Study | 2
“When considering reusable packaging, you need to lookat the entire process from start to finish,” emphasizedDoman. “It starts with looking at the current condition andidentifying all the different areas of waste, including excesshandling. Then you identify the target condition, likereducing time on the line or keeping manufacturing as leanas possible. Then you start working on the design of thereusable packaging.”
As they documented their current condition, the teamrealized that the operator on the assembly line needed toexecute many hilo moves and several touches in order toget the part in the correctorientation for assembly on thechair. In addition, extra labor wasrequired on the part of thesupplier to assemble thecorrugated boxes, and later byHerman Miller’s materialhandlers to cut open the boxes atthe assembly cell.
“We focused on this particularpart because of the high amountof handling it required,”explained Doman. “And we wantto eliminate handling of pack -aging by workers on the line.”
Reusable packagingimproves laborprocess and keeps theline moving
Today, the spines arrive from thepart supplier to Herman Millernestled in full racks that hold 180of the parts. The racks aremovable by pallet jack or hilo.The parts are ready to use assoon as the rack hits theproduction floor. The rack hastwo movable shelves so anoperator can easily access andremove the parts from both theupper and lower shelves.
The parts are presented to theoperator for easy assembly onthe chair back. And the
returnable packaging “self-returns” so the operatorassembling the chair doesn’t have to stop what he or she isdoing to return the packaging.
“There is very little handling to get the part out of the rackand onto the line. The way it is brought to the line andpresented to operator is innovative, and it supports ourongoing efforts to reduce labor on our line and improveergonomics,” said Doman. “Everyone on the line is thrilledwith it.”
In addition, the operator on the assembly line no longerneeds to cut open boxes or stop work to return empty
Process Mapping – Herman Miller Current Condition
Herman Miller Case Study | 3
packaging since it returns on its own, reducing fluctuationon the line.
“We have reduced part repackaging, part re-orienting, andexcess handling by material handlers,” said Doman.
Herman Miller is committed to sustainable businesspractices. The company states that, “on the journey towardsustainable business practices, through continuousimprovement, we will:
• Go beyond compliance with environmentalregulations and other requirements.
• Pursue prevention of pollution and eliminationof waste of any kind.
• Implement technologies to efficiently useenergy resources.
• Design our products, processes, and buildingsfor the environment.
• Promote environmental knowledge andawareness.”
“This project alone eliminated 24,645 pounds of corrugatedper year. It might not sound like a lot, but this is only one
case study of one part. There are hundreds of other casestudies like this that have produced similar results atHerman Miller,” emphasized Doman. “We will continue tobe stewards of the environment for years to come.”
When reusable packaging was first used at Herman Miller,it was primarily seen as a way of reducing part cost (by nothaving expendable packaging as part of the cost) and as away of reducing the amount of solid waste generated byexpendable packaging. Many of the original packsdeveloped 20 years ago, that include parts bulk-packed intotes and large bulk bins, are still in use at the companytoday. Over the last 12 years, Herman Miller has beenlooking at reusable packaging not just as a means ofbringing in parts in the highest density possible andreducing part cost, but also to reduce labor as it has in theSAYL assembly line.
“Now we see reusable packaging as a means to reducelabor even more than the waste it eliminates,” said Doman.“We always consider the role of returnable packaging innew product launches because we understand the benefitsof using it.”
Herman Miller Case Study | 4
About the Excellence in ReusablePackaging AwardThe annual Excellence in Reusable Packaging Awardrecognizes companies that have developed, supported, orimplemented measurable and innovative reusable solutionsin a business-to-business supply chain. The contest wasopen to non-members as well as members of the RPA.Submissions were reviewed by an independent committeeof judges who are not members of the RPA, and werejudged on the quantifiable environmental and economicbenefits achieved by the use of reusable packagingsolutions and services. The award is supported by the U.S.Environmental Protection Agency (EPA), PackagingMachinery Manufacturers Institute (PMMI), andStopWaste.Org.
About the RPAThe Reusable Packaging Association is a collaborative effortbetween manufacturers, poolers, distributors, retailers, andeducators to promote the environmental, safety, andeconomic benefits of reusable packaging. The RPA servesas the collective voice of the industry and uses itsknowledge of the members’ products and services toadvance the adoption of reusable packaging and systemsthroughout the supply chain. The RPA is focused onpromoting the expansion of reusables as the preferredpackaging solution across supply chains in all industries.For more information, visit www.reusables.org or call (703)224-8284.
About Herman MillerHerman Miller works for a better worldaround you — with inventive designs,technologies, and related services thatimprove the human experiencewherever people work, heal, learn, andlive. Its curiosity, ingenuity, and design
excellence create award-winning products and services,resulting in more than $1.7 billion in revenue in fiscal 2012.Innovative business practices and a commitment to socialresponsibility have also established Herman Miller as arecognized global company. A past recipient of theSmithsonian Institution’s Cooper-Hewitt “National DesignAward,” in 2012, Herman Miller again received the HumanRights Campaign Foundation’s top rating in its annualCorporate Equality Index and was also named, for theninth consecutive year, to the Dow Jones SustainabilityWorld Index. The company was also named among the 50Best U.S. Manufacturers by Industry Week. Herman Millertrades on the NASDAQ Global Select Market under thesymbol MLHR.
